Future Changes
Income
Where the applicant’s income is increasing and they can evidence this change as detailed in the table below, provided it is in line with policy and sustainable, this must be keyed into the income section of Mortgage Pro.
Please refer to New job, promotion or pay rise for more information.
Where the applicant has confirmed their income is reducing within the next 12 months, the lower figure must be keyed into the income section of Mortgage Pro, along with adequate notes to explain any discrepancies to the income evidence provided.
If there are any affordability issues as a result of the above, the application can be referred to underwriting for consideration.
Where the customer(s) are on maternity/paternity/adoption leave, please refer to Maternity/paternity/adoption leave before proceeding.
Where the customer has confirmed their income is reducing in more than 12 months' time, the details should be keyed into the future changes section of Mortgage Pro and the case will be referred to underwriting for consideration.
Please note the information keyed within the future changes section will not be included within the affordability calculation.
New Job
| Applicants circumstances | Primary evidence | Secondary evidence |
|---|---|---|
|
Applicant has started their new job and has a full first payslip |
Latest payslip |
Employers Reference |
|
Applicant has started their new job but does not yet have a full first payslip |
Contract of Employment (Only if this contains the new salary) & covering letter/email |
Employers Reference |
|
Applicant has not yet started their new job |
Contract of Employment (Only if this contains the new salary) & covering letter/email |
Employers Reference |
Pay rise / Promotion with current employer
| Applicants circumstances | Primary evidence | Secondary evidence |
|---|---|---|
|
Applicant has started their new role / received their pay rise and has a full first payslip |
Latest payslip |
Pay rise / Promotion letter OR Employers Reference |
|
Applicant has started their new role / received their pay rise but does not yet have a full first payslip |
Latest payslip AND Pay rise / Promotion Letter |
Contract of Employment (Only if this contains the new salary) & covering letter/email OR Employers Reference |
|
Applicant has not yet started their new role or received their pay rise but will within 3 months of full mortgage application |
Latest payslip AND Pay rise / Promotion Letter |
Contract of Employment (Only if this contains the new salary) & covering letter/email OR Employers Reference |
Commitments
If an applicant discloses a known future commitment(s), which will become payable within the next 12 months, then these should be keyed into commitments.
For example, if the applicant is expecting a baby, a dependent should be keyed.
If the application is for a deposit on a second home or residential property, and the applicant will be taking a mortgage on that property then the mortgage must be keyed as a commitment under existing mortgages, and all future costs must be included on the application.
If the application is for a deposit on a buy to let property, and the customer will be taking a mortgage on that property, then the mortgager must be keyed as a commitment under existing mortgages, and we will require evidence of any estimated rental income keyed for the new property.
If an applicant discloses a known future commitment(s), which will become payable after 12 months, the details should be keyed into the future changes section of Mortgage Pro and the case will be referred to underwriting for consideration.
All applicant’s existing commitments should be keyed in the commitments and/or household expenditure sections, regardless of how many months are remaining.
Where the applicant is repaying a commitment on or prior to completion you will need to confirm this within the commitments section for each individual commitment as applicable.
Where the applicant has a household expenditure cost, which will cease or reduce in the near future, you should key the expenditure as it is today and then you can capture the changes within the future changes section of Mortgage Pro.
Please note the information keyed within the future changes section will not be included within the affordability calculation.
If there are any affordability issues as a result of the above, the application can be referred to underwriting for consideration.